KKR to Invest USD 310 Million in PMI Electro, Takes Majority Stake to Expand Allfleet Electric Bus Platform

KKR, a private equity giant, plans to invest USD 310 million in PMI Electro to scale its electric bus platform Allfleet and enhance domestic manufacturing capabilities.

According to the firm, the investment marks KKR’s first climate transition deal in India under its Global Climate Transition strategy. As part of the transaction, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro.

“Transport electrification is a critical pillar of the energy transition, and India, with its scale, urbanisation and decarbonisation ambitions, represents one of the most significant opportunities globally,” said Neil Arora, partner and head of KKR’s Climate Transition strategy for Asia Pacific.

Founded in 2017, PMI Electro manufactures electric commercial vehicles, including 7-metre, 9-metre and 12-metre buses, along with electric school buses. The company has deployed over 3,000 buses across more than 30 cities in India.

The firm later launched Allfleet, an electric bus operating platform that develops, owns and operates large-scale public transport fleets. It aims to deploy over 5,000 e-buses through long-term concession and service agreements with state transport authorities in key cities.

Allfleet integrates electric vehicles, fleet management systems and execution capabilities under a concession-led model designed to ensure performance across the lifecycle of public transport assets.

KKR said that the investment will support Allfleet’s expansion and strengthen collaboration with public transport authorities, enabling wider deployment of electric buses and improving urban mobility.

“As cities grow and mobility needs evolve, clean and efficient public transport will play a central role in building a sustainable future,” said Aanchal Jain, chief executive of PMI Electro and director at Allfleet.

Since 2010, KKR has committed over USD 44 billion to climate and sustainability investments globally, including companies such as Zenobe, CleanPeak and Avantus. The transaction is expected to close by mid-2026, subject to regulatory approvals.